Yesterday I submitted a letter to the Globe & Mail and I was pleased to see it published in today’s edition.  I would now like to share the letter, in its entirety, with readers of our blog.  

I’m looking forward to a real dialogue on data fees… perhaps some of that conversation can take place right here, on Exchange.

- Eric

Dear Editors:

In Boyd Erman’s August 17, 2010 column (War drums beating on TMX data costs), Ian Russell of the IIAC states that TMX Group data fees are causing dealer costs to go up. That’s simply not true.

The fact is that our fees for comparable data are markedly lower than universal exchange groups in Europe and the U.S.  For access to TMX-type data (including top and depth of book, index, dividend and earnings data) a professional trading in the U.S. will not only incur higher costs but also require arrangements with multiple sources.

Looking at the Canadian market, one should not compare fees associated with a few data points on a limited number of ATS-traded issues with in-depth information on nearly 4,000 issues available through TMX Group.  Forget apples to apples…it’s like comparing prime rib with a box of macaroni and cheese.

Costs are up because ATSs have fragmented the Canadian market, leading to new subscription, connectivity and technology costs for IIAC members.  That’s the problem.  Hiring American consultants to conduct a study is one approach.  Perhaps more constructive would be an open dialogue where all the facts are considered, regardless of their complexity.

Eric Sinclair, President, TMX Datalinx

Filed under: TMX Datalinx, TMX Group